Financial calculatorsSWP Calculator
SWP Calculator
See how long a corpus lasts when you withdraw a fixed amount every month.
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- Total investment
- ₹1 Cr
- Total withdrawal
- ₹2 Cr
- ₹50,000/mo rising to ₹1,26,348
- Final value
- ₹64 L
Illustration at the rate you set, not a forecast. Mutual fund investments are subject to market risks; read all scheme related documents carefully.
Plan this with us →How this calculator works
Enter the corpus, the monthly withdrawal, the period and an assumed return. Each month the calculator pays out the withdrawal and grows the rest, so you can see whether the corpus runs down, holds steady or keeps growing. A systematic withdrawal plan is how many retirees draw a monthly income from mutual funds.
What is an SWP calculator?
An SWP calculator shows how long a mutual fund corpus lasts when you withdraw a fixed amount every month, and what is left at the end. A systematic withdrawal plan pays you a set sum each month by redeeming units while the rest stays invested. Enter the corpus, the monthly withdrawal, the period and an assumed return, with an optional yearly step-up.
How is it calculated?
Balance each month = (Balance × (1 + i)) − Withdrawal
- i is the monthly rate: the assumed yearly return divided by 12
- The withdrawal is paid after that month's growth; a step-up raises it each year
- The corpus lasts until the balance reaches zero
Reading the result
- 01A withdrawal rate at or below the assumed return leaves the corpus intact; above it, the corpus runs down, slowly at first and then quickly.
- 02Returns do not arrive evenly. A fall in the first years of withdrawals hurts more than the same fall later, so plan at a lower rate than the long-term average.
- 03Only the gain inside each withdrawal is taxed, not the whole amount.
Questions people ask
At an assumed 8% a year, ₹25,000 a month is 6% of the corpus, below the growth, so the corpus is not exhausted in 30 years. With the withdrawal rising 5% a year, it lasts about 24 years; at ₹40,000 a month with no step-up, about 22 years. Illustrations only.
There is no official figure. Planners commonly start at 4% to 6% of the corpus a year, reviewed annually, with the next two years of withdrawals kept in a liquid or short-duration fund. A rate above the portfolio's expected return runs the corpus down.
Each withdrawal is a redemption of units, so only the gain portion is taxed. In an equity fund, units held over 12 months pay 12.5% on long-term gains above ₹1.25 lakh in a financial year; units held 12 months or less pay 20%. Debt fund gains are taxed at your slab. Confirm with a chartered accountant.
A fixed deposit pays a stated rate and its interest is fully taxable at your slab. An SWP is market-linked, with no fixed rate, but only the gain in each withdrawal is taxed and the corpus can keep growing. Many retirees hold two years of income in deposits and draw the rest through an SWP.
An IDCW (dividend) payout is decided by the fund house, varies with the scheme's surplus and is taxed in full at your slab. An SWP is an amount and date you choose, taxed only on the gain portion. For a planned monthly income, an SWP from the growth option gives more control.
Usually, yes. Most equity schemes charge an exit load on units redeemed within 12 months, and gains on units held 12 months or less are taxed at the higher short-term rate. Starting the SWP after the first year avoids both; draw from a liquid fund in the meantime.
Most schemes allow an SWP from ₹500 or ₹1,000 per instalment, monthly, quarterly, half-yearly or yearly, on dates the fund house offers. The amount can be changed or the SWP stopped at any time.
One rate, applied evenly every year, which real returns never do. The corpus stays invested in a mutual fund and moves with the market, so plan at a conservative rate, keep two years of income in a liquid fund and review the figures yearly. Mutual fund investments are subject to market risks.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Figures are illustrations at an assumed rate, not a forecast. Talk to us to match a plan to your goals.